The Law Commission has unveiled draft reforms to the law on digital assets such as crypto-tokens and cryptocurrencies and non-fungible tokens (NFTs)
It proposes explicitly recognising a distinct category of personal property and clarifying the law on ownership, control, transfer and transactions involving digital assets.
As intangibles with unique properties, they do not fit easily into existing property definitions. However, they have been the subject of recent ground-breaking case law, such as D’Aloia v Binance Holdings & Others [2022] EWHC 1723 (Ch), where court documents were served by way of NFT, and Fetch.ai v Persons Unknown [2021] EWHC 2254 (Comm), confirming cryptocurrency is property.
Law Commissioner, Professor Sarah Green said the proliferation of digital assets made it ‘vital’ that the law adapt to accommodate them.
The consultation closes on 4 November 2022.
